The Bank of Korea (BOK) has newly installed a division for virtual assets to monitor the crypto market and discuss legislation on the asset class, local news agency News1 reported Tuesday.
The new virtual asset division is positioned under the central bank’s financial payment systems bureau, and is expected to spearhead the BOK’s internal discourse on Korean won-based stablecoins, according to the report citing the central bank.
The BOK also officially renamed its Digital Currency Research Team to the Digital Currency Team, a change that signals a shift from theoretical exploration toward more active digital currency initiatives. The Block has reached out to the BOK for further comments.
South Korea’s discussion surrounding stablecoins started gaining traction as the U.S. moved to endorse USD-backed stablecoins under President Donald Trump’s leadership.
The country’s recently elected President Lee Jae Myung vowed to promote a local currency-based stablecoin market as a measure to prevent capital flight, while a ruling party lawmaker has already submitted a bill to establish a fundamental regulatory framework for KRW stablecoins.
Such developments were quickly matched by the private sector, where South Korea’s leading banks and payment service providers submitted trademark applications for stablecoin ticker symbols.
Recently, the BOK reportedly decided to temporarily pause its CBDC project due to stablecoins making headway. The central bank governor Lee Chang-yong previously said that he sees a need for KRW stablecoins, but warned that allowing non-banking institutions could cause chaos.
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